Chapter 995 - Quantum Fund Crisis
Chapter 995 – Quantum Fund Crisis
When Feng Yu and the rest are laughing, someone is despair.
Soros thought he still has a chance to stage a comeback. Although the fund he has is not a lot, if he managed it well, he should recover his capital.
But at this time, an internal problem arises in Quantum Fund!
It was unsure when this has started. A rumor appeared within Quantum Fund that Soros had lost all their clients’ money, and will be bankrupt soon.
The promised payments Soros gave to those brokers will not be fulfilled. The brokers were getting annual salaries and not monthly salaries. They were not paid monthly, and they are not looking forward to any bonuses. They want their salaries and commission based on their contracts.
These few days, many Quantum Fund brokers had requested to get an advanced salary, and most of them asked for a year’s salary.
In the past, this will not be a problem. Even if all the brokers asked for advanced salaries, Quantum Fund would pay them. After all, Quantum Fund is rich.
But now, it is different. All of Quantum Fund’s money had been invested into the Futures market to recoup their losses. They can’t even afford to let their brokers get an advanced salary of one month, let alone one year!
The office’s operational funds for this month had also shrunk. Soros even used his properties, cars as collateral for loans to invest in Quantum Fund.
Using Quantum Fund’s reserve cash, Soros can only recover his capital at most. He had promised his investors at least 10% in profits.
If Soros cannot make profits for his investors, he must use his own money to make up the shortfall. Quantum Fund will shrink significantly, and Soros will drop out from the <Forbes> Wealthiest list.
Quantum Fund had encountered a crisis in the past. At that time, many investors had withdrawn their investments, and Soros bought out Quantum Fund. He was overjoyed as he had gained full control of this fund.
But this time, it is different. Soros had suffered significant losses, and might even be bankrupted. It is too hard for him to make a comeback!
Soros does not know why this is happening. His company’s brokers had trusted and look up to him. All of them had been obedient in the past, but this time, all of them seems like they are trying to revolt against him!
“Boss, what should we do? If we don’t give them their salaries, our operations will be in trouble.” Drucken Miller is panicking. If all the brokers left, how are they going to manage so many contracts? Furthermore, all these contracts are from many accounts.
The Futures market is volatile, and they might suffer losses if the trades are not entered in time.
Ruble’s sudden depreciation is a good example. The fund managers and brokers cannot react in time and caused massive losses.
“Pacify them! You must calm them. Tell them that in another two weeks, our cash flow issues will be settled. Not only will we release their salaries, but we will also even give them a bonus!” Soros lit his second cigar to calm himself.
“Boss, I think you should speak to them. Only you can calm those brokers. Miller and I had spoken to them, but they refused to listen.”
“That’s right. Boss, we trust you, and the brokers also trust you. They might not trust what we said.”
“Boss, should we fire one or two of them as a warning to others?”
The four fund managers gave Soros suggestions. Their interests are in line with Soros, and most of their money had been invested in Quantum Fund.
“Hmph! When we made money last year, we had given them high bonuses and commission. Their bonuses are higher than their salaries. How can they do this now?! We should teach them a lesson!” Drucken Miller scolded.
Soros had regretted giving those brokers high bonuses last Christmas. If not, the company will still have some money to tide them over these tough times. He should have kept some of his investor’s profits in the company, and they will have more funds now.
But maybe if Soros did those things, his losses will be higher this time. He might not even have the chance to recover.
Now, it is not time for them to regret it. They must think of a solution to get past this crisis. If Quantum Fund can get a large investment now, Soros can recover his losses and make some profits.
“Boss, you all should watch the program on XX TV station now!” Soros’ secretary entered the room, shouting.
Soros quickly switched on the TV and changed to that channel. It is a TV program on finance, and Soros’ eyes twitched when he saw a broker on the program!
Soros looks at Miller. Miller was also shocked. This broker is the spy they sent to Feng Yu’s side. Why is this person on TV, and they are unaware?
“I said I understand more about Quantum Funds than you all. I had worked in a subsidiary of Quantum Fund before and is familiar with their operations. This time, I am sure that Quantum Fund had lost all their clients’ money.”
“That’s right. Quantum Fund will have reserves, but you all can check those trading accounts. The reserves are Quantum Fund’s accounts and not their clients. This means that they had lost all their clients’ money, but their own money is still around. Their clients can sue them, but before the case is over, the Boss of Quantum fund and the managers can still live luxuriously. Those investors will be the ones suffering the losses. Even if Quantum Fund returns its investments in the future, will those investors not suffer any losses? What about the interest and opportunity cost?”
“Miller! What is going on?!” Soros shouted angrily.
“Boss, I don’t know about this. But I am sure this guy had betrayed us!”
Drucken Miller is furious. He had paid this man a large amount, but in the end, this man betrayed them! He suddenly realized that even the person they sent over to Feng Yu’s side could betray them, what about the people in their company? Will they also betray the company?
“Boss, there must be a spy in our company!” Drucken Miller shouted. The person who planted the spy or had bribed someone in the company must be Feng Yu.
The other three fund managers were stunned. Soros snubbed his cigar with all his strength.
“Investigate! Find out who is the spy immediately! I will calm those brokers. You all must do whatever you can to lead the rest to follow our plans. These two weeks are critical!”
Soros stormed out of the office. Drucken Miller and the rest looked at each other, before following him.